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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Saturday, September 24, 2011

Greece minister triggers default fears

Greece minister triggers default fears
Financial Times
By Dimitris Kontogiannis in Athens Greece's government scrambled to reassure investors that it would abide by the terms of a €110bn bail-out deal afer the country's finance minister was quoted as telling ruling party legislators that a default that ...

Greece vows no default on loans at UN meeting
The Associated Press
On Greece's economic situation, he said he had a clear message for world leaders meeting at the United Nations, who worry about its massive debts: "Greece will not default." Greece has been kept solvent by a euro110 billion ($149 billion) bailout in ...

L&G's Grodzki Says Greek Default Would Relieve Investors
Washington Post
23 (Bloomberg) -- Georg Grodzki, global head of credit research at Legal & General Investment Management, talks about the prospect of a Greek default and the potential effect on European banks. He speaks with Francine Lacqua on Bloomberg Television's ...

Flaherty says Greece faces 'grave challenge'
Vancouver Sun
The key is the knock-on effect on European banks and making sure that contagion is controlled." Flaherty was among the G20 finance ministers who issued a joint statement late Thursday vowing to take all necessary steps to keep the Greek crisis from ...

Sovereign, Bank Bond Risk Rise to Records, Default Swaps Show
Bloomberg
By Abigail Moses - Fri Sep 23 12:39:58 GMT 2011 The cost of insuring against default on European sovereign and financial debt rose to records amid renewed concerns the global economy is on the brink of another recession. The Markit iTraxx Financial ...

Regulation: Risk and contagion fears harden views
Financial Times
The FSB, the body that co-ordinates financial regulators, suggested that a “powerful source ofcontagion and systemic risk” might arise if the investment banks that were most active in synthetic ETFs ran into problems. However, providers of “physical” ...

Greece will default by December – hedge fund manager
Irish Independent
“I think it will default by December,” Mr Auerback told a conference in Dublin today. “That will give them enough time to have a plan in place to recapitalise the exposed banks and minimise the contagion. But he added that European authorities can act ...

Which Deficit Caused the PIIGS Problem?
Zacks.com
Those two were clearly “double offenders” -- running awful trade deficits of 9.4% of GDP in the case of Portugal, and 8.4% of GDP in the case of Greece in the run up to the financial crisis. Note, however, that France and even Germany and the ...

Ireland waits on EFSF fund-raising move
Irish Times
INTERNATIONAL FINANCIAL CRISIS: IRELAND WILL capitalise on any moves by euro-zone governments to use the European Financial Stability Fund to shore up their banks, according to Government sources. The possibility of widespread recapitalisation of ...

Chicago Retiree Tower Is Year's Largest Muni Default
BusinessWeek
22 (Bloomberg) -- A housing development for retirees in Chicago with about $229 million of long-term debt became the largest municipal bond default this year when it missed a Sept. 1 payment after occupancy failed to meet expectations. ...

Moody's downgrades 8 Greek banks
CBS News
European officials are speaking openly of the possibility of a Greek default, and the fears have roiled international markets. A default could send shockwaves through the banking system and the global economy, leading to losses for banks holding Greek ...

EU Barnier: Greek Default Can Be Avoided
Wall Street Journal
PARIS (Dow Jones)--European Union Internal Market Commissioner Michel Barnier Friday insisted that default can be avoided in Greece. "We think that with the significant and painful efforts Greece is making and the solidarity we have with Greece, ...

The Risk of Contagion
Montreal Gazette (blog)
There is a reason why most news organizations do not report on suicides, particularly on the method used: they don't want to give anybody else the same idea. But in some cases, such as for high-profile people, their sucides must be reported, ...

Global Markets Skittish About Europe's Banks
Wall Street Journal
The cost to insure against European financial firms' default declined Friday but remains at elevated levels. It has become increasingly expensive for European banks to borrow dollars from other lenders or in the foreign-exchange markets. ...

Sovereign default possible, avoid equities, says CLSA
Moneycontrol.com
How soon could things come to some kind of a head as far as the financial crisis is concerned? A: They are coming to a head very quickly. Bank share prices are the best way to gauge how quickly things will happen. The prices of European banks shares ...

World on the brink
Sydney Morning Herald
They warn that the ''external risks to the stability of our banks and our economies'' are reaching the levels they were before the global financial crisis. And, unlike the response to the first crisis, ''there is more limited room for manoeuvre'' now ...

ECB Trichet: Contagion Risks Threaten EMU Fin Stability
ForexLive (blog)
By Market News International || September 23, 2011 at 21:40 GMT Bappy: Dear Adam, Thanks for your support @ this week. I have a request to you, if possible give some forecast about... HIGH RISK WARNING: Foreign exchange trading carries a high level of ...

The euro will survive (That's not a typo)
CNN
He thinks Greece will avoid a default. He said the so-called troika of the EU, ECB and IMF have to keep Greece afloat because a Greek default would inevitably lead to questions about whether it and fellow PIIGS Portugal, Ireland, Italy and Spain can ...

'Modest growth' forecast for NZ next year
Stuff.co.nz
Economic growth is likely to pick up next year, but the picture could be "significantly worse" for New Zealand if there is a sovereign debt default or the eurozone splits, forecaster Berl says. "Uncertainty is the main word to litter this forecast," ...

U.S. Stocks: Is the Dow's Pullback a Buying Opportunity?
International Business Times
By Joseph Lazzaro, US Editor | September 23, 2011 12:06 PM EDT Talk about an unnerving week for US investors: European leaders continue to press Greece on austerity measures, even as it readies an aid package to prevent contagion; combine that with a ...

High risk of Greece default towards year end RBS
Moneycontrol.com
So when the situation of the sovereign intensifies, the banks face a wave ofcontagion because they are expected potentially to mark down from losses due to the fact that the bond holdings have valued less when the markets sovereign bond is under ...

Dutch central bank chief: Greek default possible
Forbes
AP , 09.23.11, 04:04 AM EDT THE HAGUE, Netherlands -- The president of the Dutch central bank says in a newspaper interview that he no longer rules out the possibility that Greece may not be able to pay back its crippling government debt. ...

Greece Teeters Toward Default
Investor's Business Daily
After 2 days of phone talks, Athens failed to close a deal with EU/ECB/IMF officials to make sure it'll get a loan tranche of 8 bil euros next month to avoid default. Talks in Athens will resume this week. But Greek and other European officials are ...

Developing countries: Tackle financial crisis
eTaiwan News
By HARRY DUNPHY AP Developing countries urged on Thursday that the world take urgent, coordinated international action to tackle the financial crisis roiling the economies of major advanced countries to prevent it from spilling over into emerging ...

NYMEX-Crude down on ongoing economic worry
Reuters
European shares extended losses, weighed by heightened concerns of an imminent Greek default, as well as the scale of debt write-downs facing European lenders. [.EU] Greece sought to play down reports it was considering solutions involving greater ...

Six reasons why Greece should default - The Curious Capitalist ...
By Michael Schuman
The prevailing wisdom concerning Greece is that a default on its $400 billion of sovereign debt would be a catastrophe for the world's financial markets and help speed the global economy towards a renewed recession. We can't rule out that possibility. ... Its debt level is not under control, contagionhasn't been squashed, and there is no hope that Greece can return to private capital markets for funding at any point in the foreseeable future. There is a high probability that the EU is ...
The Curious Capitalist

NewsDaily: Greek default talk gathers pace, markets pause on G20
By Angeliki Koutantou and Jan Strupczewski
Talk of a possible Greek default gained pace on Friday while a pledge by the world's major economies to prevent Europe's debt crisis from undermining banks and the global economy steadied financial markets. ... Politicians in northern Europe, especially in Germany, have opposed dedicating more money to offset what they see as the profligacy of highly indebted countries such as Greece, complicating discussions about fighting the financial crisis. Those tensions have flared within ...
NewsDaily: Top Headlines

Hedge Fund Manager Thinks Greece Will Default By December
By Julia La Roche
“I think it will default by December,” said Auerback during a conference in Dublin. “That will give them enough time to have a plan in place to recapitalize the exposed banks and minimize the contagion." While that might end up being Greece's ...
Business Insider

Could a Greek default hit you? | Bankrate.com
By Sheyna Steiner
Aside from direct casualties of default, including the threat of contagion to other beleaguered Eurozone countries, Portugal, Ireland, Italy and Spain, damage to the Euro and the European banking system, the U.S. could incur some damage. One way ... Money market funds already came under intense scrutiny following the 2008 credit crisis, during which one fund, the Reserve Primary fund, dipped beneath the $1 per share price money funds are presumed to strictly hew. As a result ...
Bankrate.com